Shabana Mahmood, the Birmingham MP, could make three key announcements if she becomes Chancellor on Monday, according to reports. Her first task would be to create an emergency cost of living package, which may include targeted support for energy bills, a rent freeze, and a cap on bus fares.
Potential Cost of Living Measures
The Labour Party MP for Makerfield, Andy Burnham, is set to become Prime Minister on Monday and reportedly wants to appoint Ms Mahmood as Chancellor. The emergency package is expected to address rising living costs, with specific measures to help households struggling with energy prices and housing costs.
Reactions from Financial Experts
Amid the speculation, some financiers have questioned Ms Mahmood's financial experience. One leading City figure noted, "She’s got no background in finance, so I do wonder if this pick suggests that Andy will have more influence on Number 11." A government source on the Labour Right described her as "not collegiate," adding that she is part of a group that has "handed the party to the soft Left."
Market Response
However, Guillermo Felices from fund manager PGIM said the rumoured appointment had soothed traders' nerves. "The market was really worried that someone like Ed Miliband would be appointed as Chancellor. She’s seen as a much more credible, market-friendly alternative because within the Labour Party, she’s on the more conservative side fiscally and in terms of political leanings," he said.
